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    Introduction to

    System

    DynamicsIshardita P. Tama

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    Outline

    Understanding Systems Thinking

    System Dynamics (SD)

    Causal Loop Diagram Stock and Flow Diagram

    References

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    System thinking

    is the process of understanding how things, regarded assystems, influence one another within a whole

    an approach to problem solving, by viewing "problems" as

    parts of an overall system, rather than reacting to specificpart, outcomes or events and potentially contributing tofurther development of unintended consequences

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    Und

    erstandingSyste

    ms

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    California 1990 :o ZEV (zero emission vehicle)electric carsno tailpipe, no

    pollution

    o Looks good?

    o

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    Yesterdays solution becomes todaysproblem

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    Feedback

    o The more NATO nuclear weapons, the more Soviet Unionbuilt

    o The more a firm lowers its price, the more the competitors

    respond in kind, forcing the firm to lower even moreo The less nicotine in a cigarette the more smokers must

    consume to get the dose they need

    o The more attractive a city, the greater immigration fromsurrounding areas, leading to high criminal rate, and

    eventually decreasing its attractiveness

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    We have to be aware and understand theimplications of feedback by the decisions we make.

    Learn about the structure and dynamics ofcomplex system

    System Dynamics

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    System Dynamicso Introduced by Jay Forrester of MIT in 1958

    o The study of information-feedback characteristics of

    industry activity to show how organizational structure,amplification (in policies), and time delays (in decisionsand actions) interact to influence the success of theenterprise (Forrest 1958 & 1961)

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    High AbstractionLess Details Macro

    Level Strategic Level

    Middle AbstractionMedium Details

    Meso Level TacticalLevel

    Low Abstraction

    More DetailsMicro Level

    Operational Level Individual objects, exact sizes, distances, velocities, timings,

    Discrete Event Entities (passive

    objects)

    Flowchartsand/or transportnetworks

    Resources

    Aggregates, Global Casual Dependencies, Feedback Dynamics,

    Mainly discrete

    System Dynamics

    Levels (aggregates)

    Stock-and-Flow Diagrams

    Feedback loops

    Mainly continuous

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    Tools Causal Loop Diagram

    o a useful way to represent dynamic interrelationships

    o Provide a visual representation with which to communicate that

    understanding

    o Make explicit one's understanding of a system structure - Capture the

    mental model

    Stock and Flow Diagramo Develop model using stock and flow principle

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    Causal Loop Diagram a useful way to represent dynamic interrelationships Provide a visual representation with which to communicate that understanding Make explicit one's understanding of a system structure - Capture the mental model

    Variables - an element in a situation which may act or be acted upon Vary up or down over time (not an event) Nouns or noun phrases (not action words)

    Links / Arrows - show the relationship and the directionof influence between variables

    S's and O's - show the way one variable moves or changes in relation toanother S stands for "same direction O stands for "opposite direction

    orB - Balancing feedback loop that seeks equilibrium

    orR - Reinforcing feedback loop that amplifies change

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    Structure of CLD

    HungerAmount

    EatenB

    O

    S

    The O means that thetwo variables move inopposite directions, allother things being equal

    The S means that thetwo variables move in thesame direction, all otherthings being equal

    Nature of loop. Indicateswhether the loop is

    balancing or reinforcing

    Causal relationshipbetween two variables

    Variables

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    Employee

    Performance

    SupervisorsSupportiveBehavior

    Unsupportive

    Behavior

    Structure

    S

    S

    Reinforcing Loop

    Perf.Level

    Time

    Behavior Over Time

    SupportiveBehavior

    Employee

    Performance

    SupervisorsSupportiveBehavior

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    Discrepancy

    Inventory

    Adjustment

    Structure

    ActualInventory

    DesiredInventory

    Desired Inventory

    Time

    Behavior Over Time

    100

    100 - -

    100 ++

    Actual Inventory

    S

    S

    S

    O

    Balancing Loop

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    CLD mental model

    Kalkulasi ?

    Stock and Flow Diagram (SFD)o Quantification issue

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    Stocks Stocks are accumulations.

    Stocks hold the current state of the system: whatyou would see if you were to take a snapshot of thesystem. If you take a picture of a bathtub, you caneasily see the level of the water. Wateraccumulates in a bathtub. The accumulatedvolume of water is a stock.

    Stocks fully describe the condition of the system at

    any point in time. Stocks, furthermore, do notchange instantaneously: they change graduallyover a period of time.

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    Flows / Rate Flows do the changing.

    The faucet pours water into the bathtub and thedrain sucks water out. Flows increase or decreasestocks not just once, but every unit of time. The

    entire time that the faucet is turned on and thedrain unplugged, water will flow in and out.

    All systems that change through time can berepresented by using only stocks and flows.

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    STOCK

    FLOW / RATE

    Auxiliary

    Stock

    Rate

    i1

    i2

    i3

    Auxiliary

    o1

    o2

    o3

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    Birth rate norm

    Death rate norm

    Population

    Birth rate

    Death rate

    P

    BRN

    DRN

    BR

    DR

    Births

    population

    Deaths

    Birth rate normal

    Death rate normal

    R

    B

    +

    +

    +

    +

    +

    --

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    References Todd Little, Introduction to Systems Thinking and

    Causal Loops,www.toddlittleweb.com/Presentations/wwsdc/SystemsCausalLoops.ppt

    Erik R Larsen, Introduction to System Dynamics,www.cs.unibo.it/~fioretti/AC/AC2005/docs/Bertinoro.ppt

    J.D. Sterman, Business Dynamics

    A.C. McLucas, System Dynamics application

    http://www.toddlittleweb.com/Presentations/wwsdc/SystemsCausalLoops.ppthttp://www.toddlittleweb.com/Presentations/wwsdc/SystemsCausalLoops.ppthttp://www.cs.unibo.it/~fioretti/AC/AC2005/docs/Bertinoro.ppthttp://www.cs.unibo.it/~fioretti/AC/AC2005/docs/Bertinoro.ppthttp://www.cs.unibo.it/~fioretti/AC/AC2005/docs/Bertinoro.ppthttp://www.cs.unibo.it/~fioretti/AC/AC2005/docs/Bertinoro.ppthttp://www.toddlittleweb.com/Presentations/wwsdc/SystemsCausalLoops.ppt